Download or read book Mutual Fund Distributions written by and published by . This book was released on 1997 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Tax Information on Mutual Fund Distributions written by United States. Internal Revenue Service and published by . This book was released on 1977 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Mutual Fund Distributions written by United States. Internal Revenue Service and published by . This book was released on 1979 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Tax Information on Investment Income and Expenses written by United States. Internal Revenue Service and published by . This book was released on 1977 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Taxes and Mutual Fund Inflows Around Distribution Dates written by Woodrow Tyler Johnson and published by . This book was released on 2008 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: Capital gain distributions by mutual funds generate tax liability for taxable shareholders, thereby reducing their after-tax returns. Taxable investors who are considering purchasing fund shares around distribution dates have an incentive to delay their purchase until after the distribution, since this will reduce the present value of their tax liability. Non-taxable shareholders, such as those who invest through IRAs and other tax-deferred accounts, face no such incentive for delaying purchase. This paper compares daily shareholder transactions by taxable and non-taxable investors in the mutual funds of a single no-load fund complex around distribution dates. Gross inflows to taxable accounts are significantly lower in the weeks preceding distribution dates than in the weeks following them, but gross inflows to tax-deferred accounts do not change around these dates. This finding suggests that some taxable shareholders time their purchase of mutual fund shares to avoid the tax acceleration associated with distributions. Taxable shareholders who purchase shares just before distribution dates also have shorter holding periods, on average, than those who buy after a distribution. The cost of the distribution-related tax acceleration for pre-distribution buyers is therefore somewhat less than that for those who buy after the distribution.
Download or read book Providing Tax Equity for Mutual Fund Investors written by Jason J. Fichtner and published by . This book was released on 2005 with total page 17 pages. Available in PDF, EPUB and Kindle. Book excerpt: Mutual funds are an important vehicle for low- and middle-income households to invest in the stock market and save for the future. The number of families investing in mutual funds has increased more than 1,000 percent, from 4.6 million households investing in mutual funds in 1980, to a high of 56.3 million in 2001. For 2003, 53.3 million households owned mutual funds.Recently, the mutual fund industry has received much attention relating to corporate structures, trading fees and expenses, and potential abuses in the industry. All of these issues are important and result in additional costs to mutual fund investors and should be fully addressed. Nonetheless, it is extremely important that attention not be diverted from the largest costs affecting mutual fund shareholders - taxes.Even if shareholders do nothing more than buy and hold mutual fund shares, they could still be hit with potentially large tax liabilities due to capital gain distributions. Shareholders are then either forced to sell assets to pay the tax liability, or must divert capital from other more productive uses in order to pay the tax. The current tax on mutual fund capital gain distributions is economically inefficient, creates an opportunity cost to shareholders, and can further result in considerable economic losses due to the effects of compounding.A bill (H.R. 496) introduced by Rep. Jim Saxton (R-NJ) addresses the problems taxable mutual fund investors face relating to the unfair and highly punitive tax levied on capital gain distributions. The bill would allow a deferral of capital gain distributions up to $6,000 for married couples filing jointly and $3,000 for all other tax filers. The deferral provision in Rep. Saxton's bill would provide substantial benefits to low- and middle-income taxpayers investing in mutual funds and significantly aid American families saving for their future.
Download or read book Tax information on mutual fund distributions written by United States. Internal Revenue Service and published by . This book was released on 1976 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Mutual Funds Desk Book written by William J. Casey and published by . This book was released on 1968 with total page 270 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book A Selection of Internal Revenue Service Tax Information Publications written by United States. Internal Revenue Service and published by . This book was released on 1994 with total page 388 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Capital Gains Tax Gap written by United States Government Accountability Office and published by Createspace Independent Publishing Platform. This book was released on 2017-09-13 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: For tax year 2001, the Internal Revenue Service (IRS) estimated a tax gap of at least $11 billion from individual taxpayers misreporting income from capital assets (generally those owned for investment or personal purposes). IRS did not estimate the portion of this gap from securities (e.g., stocks, bonds, and mutual fund capital gains distributions). GAO was asked for information on (1) the extent and types of noncompliance for individual taxpayers that misreport securities capital gains, (2) actions IRS takes to reduce the securities tax gap, and (3) options with the potential to improve taxpayer voluntary compliance and IRS's ability to address noncompliant taxpayers. For estimates of noncompliance, GAO analyzed a probability sample of examination cases for tax year 2001 from the most recent IRS study of individual tax compliance. GAO estimates that 38 percent of individual taxpayers with securities transactions misreported their capital gains or losses in tax year 2001. A greater estimated percentage of taxpayers misreported gains or losses from securities sales (36 percent) than capital gain distributions from mutual funds (13 percent). This may be because taxpayers must determine the taxable portion of securities sales' income whereas they need only add up their capital gain distributions. Among individual taxpayers who misreported securities sales, roughly two-thirds underreported and roughly one-third overreported. Furthermore, about half of these taxpayers who misreported failed to accurately report the securities' cost, or basis, sometimes because they did not know the basis or failed to adjust the basis appropriately. IRS attempts to reduce the securities' tax gap through enforcement and taxpayer service programs, but challenges limit their impact. Through enforcement programs, IRS contacts taxpayers who may have misreported capital gains or losses and seeks to secure the correct tax amount. IRS also offers services to help taxpayers comply with capital gains tax obligations, such as guidance on how to determine securities' gains and losses. Challenges that limit these programs' impact include the lack of information on basis, which IRS needs to verify most gains and losses, and uncertainty as to whether taxpayers use or understand the guidance. Expanding the information brokers report on securities sales to include adjusted cost basis has the potential to improve taxpayers' compliance and help IRS find noncompliant taxpayers. IRS research shows that taxpayers report their income much more accurately when it is reported to them and IRS. Basis reporting also would reduce taxpayers' burden. For IRS, basis reporting would provide information to verify securities gains or losses and to better target enforcement resources on noncompliant taxpayers. However, basis reporting would raise challenges that would need to be addressed. For instance, brokers would incur costs and burdens-even as taxpayers' costs and burdens decrease somewhat-and many issues would arise about how to calculate adjusted basis, which securities would be covered, and how information would be transferred among brokers. However, industry representatives said that many brokers already provide some basis information to many of their clients and some use an existing system to track and transfer basis and other information about securities. Many of the challenges to implementing basis reporting also could be mitigated. For example, many of the challenges could be addressed by only requiring adjusted basis reporting for future purchases, and by developing consistent rules to be used by all brokers. To the extent that actions to mitigate the challenges to basis reporting delay its implementation or limit coverage to only certain types of securities, the resulting improvements to taxpayers' voluntary reporting compliance would be somewhat constrained.
Download or read book Tax Management Portfolios written by and published by . This book was released on 1971* with total page 200 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book State Taxation of Income from Mutual Funds Or Money Market Accounts Invested in U S Government Securities written by Roderick Graham and published by . This book was released on 1995 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Foreign Investors in U S Mutual Funds written by Jeffrey M. Colon and published by . This book was released on 2016 with total page 69 pages. Available in PDF, EPUB and Kindle. Book excerpt: The United States is generally a tax haven for foreign portfolio investors: the United States exempts from tax most U.S. source interest and capital gains, but taxes dividends from U.S. companies; tax treaties generally eliminate U.S. tax on interest and reduce the 30% statutory rate on dividends.Foreign investors in U.S. mutual funds have not been treated as favorably. Fund distributions (other than of net capital gains) were originally treated as taxable dividends, regardless of the fund's underlying income. Interest or short-term capital gains earned by the mutual fund -- which would have been tax exempt if directly earned by a foreign investor -- were converted into taxable dividend income when distributed.To encourage foreign investment in U.S. mutual funds, Congress in 2004 modified the mutual fund distribution rules to exempt from tax fund dividends that are attributable to the fund's U.S. source interest income or short-term capital gains. The stated goal of the legislation was to tax foreign investors on the same basis as if they had directly earned their share of a fund's income.These provisions fail to fully achieve this goal by denying pass-through treatment for foreign source interest and dividends. This policy appears to be aimed at preventing foreign investors from using a U.S. mutual fund to obtain U.S. treaty benefits.Foreign source income should retain its source and character when distributed to foreign shareholders. This tax treatment is consistent with the tax results a foreign investor realizes when he or she invests directly or through a partnership and encourages foreign investment in mutual funds that invest globally. The treaty shopping concerns may be illusory. To address potential treaty abuse, Congress could consider limiting the pass- through of foreign source income to treaty residents.
Download or read book Tax Information on Mutual Funds Distributions written by United States. Internal Revenue Service and published by . This book was released on 1968 with total page 10 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book An Analysis of the Tradeoff between Tax Deferred Earnings in Iras and Preferential Capital Gains written by Terry L. Crain and published by . This book was released on 2001 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper extends prior research in evaluating the decision of whether to invest in a mutual fund either outright or through one of the three available IRAs: the deductible IRA, the Roth IRA, and the nondeductible IRA. We provide mathematical models for after-tax accumulations for each of the investments that are a function of return, the percentage of the return currently taxable to the investor, the time horizon of the investment, the capital gain tax rate, and the ordinary income tax rate. The Roth IRA and the deductible IRA always dominate investments in the nondeductible IRA or through outright investment. However, in comparing the nondeductible IRA and outright investments, the outcome is dependent on the investment goals of the mutual fund and whether it generates substantial dividend distributions or capital gain distributions. Mutual funds with small dividend and capital gain distributions may accumulate larger amounts if held outright while mutual funds that pay substantial dividends or make substantial capital gain distributions accumulate larger after-tax amounts when invested in a nondeductible IRA.
Download or read book Tax Withholding and Estimated Tax written by and published by . This book was released on 1999 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Charles Schwab Guide to Finances After Fifty written by Carrie Schwab-Pomerantz and published by Crown Currency. This book was released on 2014-04-01 with total page 434 pages. Available in PDF, EPUB and Kindle. Book excerpt: Here at last are the hard-to-find answers to the dizzying array of financial questions plaguing those who are age fifty and older. The financial world is more complex than ever, and people are struggling to make sense of it all. If you’re like most people moving into the phase of life where protecting—as well as growing-- assets is paramount, you’re faced with a number of financial puzzles. Maybe you’re struggling to get your kids through college without drawing down your life’s savings. Perhaps you sense your nest egg is at risk and want to move into safer investments. Maybe you’re contemplating downsizing to a smaller home, but aren’t sure of the financial implications. Possibly, medical expenses have become a bigger drain than you expected and you need help assessing options. Perhaps you’ll shortly be eligible for social security but want to optimize when and how to take it. Whatever your specific financial issue, one thing is certain—your range of choices is vast. As the financial world becomes increasingly complex, what you need is deeply researched advice from professionals whose credentials are impeccable and who prize clarity and straightforwardness over financial mumbo-jumbo. Carrie Schwab-Pomerantz and the Schwab team have been helping clients tackle their toughest money issues for decades. Through Carrie’s popular “Ask Carrie” columns, her leadership of the Charles Schwab Foundation, and her work across party lines through two White House administrations and with the President’s Advisory Council on Financial Capability, she has become one of America’s most trusted sources for financial advice. Here, Carrie will not only answer all the questions that keep you up at night, she’ll provide answers to many questions you haven’t considered but should.
